After analyzing the 1D chart, I noted long-term channels of support & resistance in the yellow-ish channels displayed on the chart. Furthermore, when analyzing the candlesticks for any apparent trends I noted a Head & Shoulders pattern that has formed on the 1D chart.
Recently, CADCHF has been in an uptrend since reversing from key support levels in late-July to early-August. In early-October, the pair was seemingly forming a double bottom around 0.74400 that lead to a bounce as high as 0.76310 where it was rejected and fell back back down to around the 0.74830 level. The initial pump from the double bottom bounced to around 0.75700 and retraced to around 0.74900, forming the left-shoulder. Since then, the pair has bounced back to around 0.77700 where it was once again rejected sending it back down to where it previously was around the 0.74900 level. This serious of moves in price have formed the head in the H&S formation. Following the big dump that formed the head, there was a rally back to around the 0.75700 where it was once again rejected, sending CADCHF back to the 0.74400 level which completed the right shoulder.
After reaching the 0.74400 levels again, there was a large bullish engulfing candle that brought the pair back to around 0.74900 on Friday 11/15 before the market closed for the weekend. I project the pair to move slightly higher early this week to catch buyers in a bull-trap, which will present a great short opportunity for the bears with a long target of the long-term support levels noted.
DISCLAIMER: This idea is merely my own interoperation of the current price of the pair. I am not a financial advisor and am not sharing any financial advice. Follow at your own risk.
Recently, CADCHF has been in an uptrend since reversing from key support levels in late-July to early-August. In early-October, the pair was seemingly forming a double bottom around 0.74400 that lead to a bounce as high as 0.76310 where it was rejected and fell back back down to around the 0.74830 level. The initial pump from the double bottom bounced to around 0.75700 and retraced to around 0.74900, forming the left-shoulder. Since then, the pair has bounced back to around 0.77700 where it was once again rejected sending it back down to where it previously was around the 0.74900 level. This serious of moves in price have formed the head in the H&S formation. Following the big dump that formed the head, there was a rally back to around the 0.75700 where it was once again rejected, sending CADCHF back to the 0.74400 level which completed the right shoulder.
After reaching the 0.74400 levels again, there was a large bullish engulfing candle that brought the pair back to around 0.74900 on Friday 11/15 before the market closed for the weekend. I project the pair to move slightly higher early this week to catch buyers in a bull-trap, which will present a great short opportunity for the bears with a long target of the long-term support levels noted.
DISCLAIMER: This idea is merely my own interoperation of the current price of the pair. I am not a financial advisor and am not sharing any financial advice. Follow at your own risk.